Credit Union Competition

South Dakota Credit Union Graphic

Although they portray themselves as mom and pop shops for people of modest means, today credit unions are a $1.3 trillion industry, with many indistinguishable from banks. The BIG difference – they don’t pay federal income taxes, depriving the U.S. Treasury of roughly $2 billion every year.

  • Federal Income Taxes Paid by Credit Unions: $0
  • Federal Income Taxes Paid Annually by an Average South Dakota Resident Making $54,467/Year: $4,118

The South Dakota Bankers Association believes that special tax breaks granted to credit unions have outlived their purpose and should be eliminated by Congress. Special tax and regulatory breaks have been granted to credit unions for decades, giving them an unjustified advantage in the marketplace.

Fast Facts

  • In 2017, through strategic gerrymandering, Black Hills Federal Credit Union used the district loophole to connect South Dakota’s two largest distinct metropolitan areas by population size. The credit union has used the rural district geographic common-bond to expand its footprint across the state on three different occasions. – NCUA Report of Activity, May 2017
  • Black Hills Federal Credit Union was challenged in the South Dakota Supreme Court after complaints that it unilaterally changed the terms of the policy by increasing what it charged for coverage with negligible increase in disability coverage. – Credit Union Watch, May 2013

Learn more at Explore Credit Unions.

Questions, contact SDBA President Curt Everson at 605.224.1653 or via email